Blockstream, the Bitcoin infrastructure provider, refused to continue negotiations with hackers last week who stole 4,000 bitcoins off its Liquid system.
Blockstream: Writing about X on Friday said The company said that hackers had until the end of the year to refund the money before it would cooperate with the law.
On Sunday, white-hat hackers will be a threat. withdrew About $320 Million from the Federation wallet, which supports Liquid (a sidechain of Blockstream). After negotiating with Blockstream, they returned most of the funds but kept 598.5 coins worth over $46 million — demanding it as ransom.
“Blockstream will not pay a ransom for the return of stolen funds,” The post is read. “Taking assets without authorization and withholding their return is a crime, not responsible disclosure. It is not white-hat activity. It is theft.”
Addendum: “We will work with law enforcement, exchanges, service providers, forensic specialists, and other relevant parties to trace and recover the assets and identify those responsible.”
“We will not pay for the return of stolen property. We will not abandon our users. The Bitcoin community will not stop pursuing the funds.”
L-BTC (Liquid) is layer-2, created by Blockstream, that allows users move bitcoin-backed assets quickly. One of the assets, LBTC, is a token backed by bitcoin that allows for quick settlement — a bit like the Lightning Network.
Hackers exploited an inflation bug in the Liquid sidechain, creating over 4,000 LBTC which did not previously exist. They then cashed them out to real on-chain Bitcoins.
They then had an exchange Blockstream allows you to send messages by writing them into Bitcoin blocks.
The white hats sent a message that read: “Please fix the bug first. The chain is under risk at latest commit right now. Make sure every node is patched. Then we will transfer the money back safely after confirming the fix.”
The hackers have slammed Blocksteam in the latest message. “delusional, greedy, and arrogant,” Threatened to disclose all Blockstream encrypted messages unless 10% of the Bitcoins were allowed to be kept by the company.
“You SHALL pay 10% using your own money as bug bounty or you will cause all your holders a 15% loss for your irresponsibility and stinginess,” Read the message.
Bitcoin is still in shock after July’s hack. steal Coldcard wallet owners have received over 1,800 bitcoins valued at close to $140 millions.
Hackers targeted users of Coinkite’s popular hardware wallet because it did not have a random number generator.
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Source: bitcoinmagazine.com
